Your husband died after his RBD, so you are correct, you are an Eligible Designated Beneficiary who, if you maintain the traditional IRAs as inherited does not use the 10-year rule and must take annual beneficiary RMDs beginning in 2024 (not 2023). If your husband did not complete his 2023 RMD, you must complete his RMD. As I said previously, the deadline to complete his 2023 is December 31, 2023, but you get an automatic waiver of the excess accumulation penalty if you complete it after 2023 but by the due date, including extensions, of your 2023 tax return. The only reason to maintain the traditional IRA as an inherited IRA is to be able to take penalty-free distributions before age 59½, When you reach age 59½ (or before if you don't need the money for spending), you can assume ownership of the traditional IRA and RMDs will stop until the year you reach age 75.
Roth IRAs don't have an RBD, so if you maintain the Roth IRA as inherited you can opt into the 10-year rule for the Roth IRA or take annual RMDs based on your life expectancy. Usually, though, it makes sense to just assume ownership of the Roth IRA and before age 59½ not take out any more than the contribution basis.
There is never a 10% early-distribution penalty on a distribution from an inherited IRA.
"their answer was, I have only two options, which are Cash them all and Roll over in my name (Assuming IRA as my own) "
Unless their particular IRA agreement explicitly prohibits transferring these to inherited IRAs for your benefit, which is extremely doubtful, nothing prevents you from doing so and their legal department is wrong. This sounds like they are simply trying to discourage you from maintaining inherited traditional and Roth IRAs because they don't want to deal with it. Movement to an inherited IRA for your benefit must be done by nonreportable trustee-to-trustee transfer; it is not permitted to be done by reportable distribution and rollover. Also, if you move both the traditional and Roth IRAs to traditional and Roth IRAs to your own, at least one (and preferably both) must be done by trustee-to-trustee transfer. Only one can be moved by reportable distribution and rollover without violating the one-rollover-per-12-months limitation.
Be aware that banks are notoriously inept at dealing with inherited IRAs, particularly with understanding the distinction between a nonreportable trustee-to-trustee transfer (which can be within the same trustee or to a different trustee and is always the preferred method of moving an IRA) and a distribution and rollover. Every time I've had to deal with inheriting an IRA held by a bank I've had to educate them and until they corrected the forms refuse to sign any that indicated that I was receiving a reportable distribution when the intent was to maintain an inherited IRA. I've even had to force one to use the correct third-party IRA agreement when establishing the inherited IRA when they tried to use the third-party agreement for an owned IRA. (Many banks purchase IRA forms and standard agreements from a third party, one major third-party provider in particular.)
